Forget TV, billboards and radio—if you’re spending money promoting your business in 2024, advertising on Google should be your first choice. Maybe don’t forget the other mediums, but you should prioritise online advertising. Google Ads is tops, with ROI of 800%; you’d be crazy not to.

Google conservatively estimates for every $1 a business spends on Google Ads, they receive $8 in profit through Google Search and Ads! Here is more about advertising on Google and why you should be using Google ads to make money in 2024!

Fast, Fun and Amazing Facts About Google Ads   

In this blog, we’re talking about advertising on Google, specifically Google ads.

This powerful platform helps businesses to “Show up at the right time and place across the vast Google Ads ecosystem.” (Google)

If you need any motivation to add Google Ads to your marketing budget in 2024, these stats say it all!

• The average conversion rate of Google Ads is 4.83% across major industries. ¹
• If you’re in the first position, the average click-through rate (CTR) is 7.94%! ²
• Google Ads generates 2 x more visitors than organic SEO. ³
• Around 83% (4.3bn) of the world’s Internet population use Google. ⁴
• 3 out 4 people say paid ads make it easier for them to find information they are searching for online. ⁵

The ranking is calculated on numerous differently weighted factors such as (but not limited to):

• Your bid
• Ad quality
• Ad extensions
• Auction-time signals
• Ad relevance
• Landing page quality (user experience)
• Meeting minimum ad rank requirements
• Website authority
• Legal compliance

The important thing to remember when advertising on Google is that money doesn’t guarantee visibility! Google wants to serve your ads but prioritises the user first, so it will not display low-quality, misleading or dangerous ads.

All Eyes on Google Ads

Google has approximately 83% of the global market share of internet users. That’s 4/5 of 43 billion people actively searching for products, services and solutions! That number of eyeballs is imperceivable.

Now consider waving your hand above a crowd that size and hoping that someone in your target audience with a need for YOUR offering sees your hand. Nay—not only sees your hand but grabs it!

That’s what Google Ads does. It elevates your message above the masses and displays it to people who meet the right criteria. But it’s not a silver bullet. As mentioned, the Google Ads process is:

• Complex with hundreds of factors influencing where, when and how often your ads are served.
• Dynamic with the algorithms continually updating and refreshing.

You have to work hard at advertising on Google. The good news is that if you put the work into Google Ads, Google Ads will work for you!

How to Make Money from Advertising on Google Ads in 2024

Winning at Google Advertising is a lot like being a runner. You don’t merely get on the track, push hard and hope for the best. You must ensure you have the optimal training programme, coaches, diet, and state of mind just to get into peak condition before the race.

Likewise, you have to carefully consider and set into place a laundry list of things to help your ads perform their best.

1. Set the right goals. Have a clear-cut idea of what you want to achieve.
2. Choose the correct keywords, looking at competition, relevance, average cost per click, and data on the associated user intent (purchase, information, etc.)
3. Place your bids considering your budget, cost-per-acquisition and potential ROI. This is where campaigns are vital. Set up campaigns (ad clusters) to reach high lifetime value customers with niche and often more expensive Ads. Or focus on lower cost and high volume keywords for fast-moving goods.
4. Target with pinpoint accuracy. The better your target parameters, the better quality leads you’ll receive.
5. Choose your ad format. Google offers a variety of ad formats like text, image, video, and shopping ads.
6. Design a persuasive ad. Outstanding copy is essential!
7. Create an equally effective landing page. This page needs to convert visitors AND meet Google’s standards.
8.  Track
9.  Optimise
10.  Repeat

For the extra edge, stay up to date with Google’s latest innovations (they are continually offering new ad formats and features that attract businesses to the platform).

Let the data decide everything! That is to make data-driven decisions. Everything on Google Ads is measurable, and you should use its detailed analytics and vast insights to inform optimisation.

Return on Investment from Google Ads

To profit from Google Ads, you need to understand your profit margins, return on investment (ROI), factoring in sales costs, and return on ad spending (ROAS). Assign a value to your conversions and track them. Include these in your formula when you calculate ROAS and ROI.

Naturally, you want a higher conversion rate from higher value leads to increase your profits. When you follow and master the Google Ads steps mentioned above, these rewards are enormous.

The average cost per acquisition (CPA) for Google Ads across all industries is $56 for search and $90.80 for display network. That’s roughly R 1025 and R 1677, respectively. Not bad if you’re a telephony provider with a monthly ARPU of R255. You’ve made back your money in four months. A drop in the ocean considering cross and upsell opportunities contributing to the overall lifetime value.  

Where B2B Advertising Gets Tricky

Business-to-business advertisers often have difficulty getting results from their Google Advertising because they are missing the fundamentals of where the sale happens.

It’s not likely that someone looking for an industrial dust suppression solution for mines and construction sites will simply “add to cart” after clicking on the advert. However, knowing the intent of the search and how to engage with prospects makes all the difference.

Your Google Ad will be enough to raise awareness, even if they don’t click immediately – those impressions count. Your Ad will gently lead those who click into a carefully designed sales funnel, where you can nurture them from prospect to sale.

Overall, what Google Ads needs is time and expertise.

Outsourcing your Google Ads management can be a strategic decision that unlocks significant benefits for your business.

• You can avoid a steep learning curve and jump straight to reaping your desired ROI.
• Launching a new campaign is quick and painless.
• You don’t have to keep your eyes glued to marketing and SEO news to keep up with Algorithm updates or new features.
• You’ll save hours trudging through data and enjoy neatly summated reports that pull out the pertinent insights with recommendations on what to do next.
• You don’t have to hire a suite of in-house experts for copy, design, campaign management and funnel creation. One agency offers all that for less than it costs to hire one person full-time.

Advertising on Google Ads is a massively powerful way to reach your target audience effectively. Its potency grows as you add more expertise and tricks of the trade to your arsenal. Instead of paying school fees trying to learn a new discipline this year, maximise your advertising spend by having the pros manage it all for you!

Save Time. Save Money. Jump to the top of Paid Search

Sources

¹ Freudenberg, David. “Average Conversion Rate for Google Ads – The Conversion Rate Cost Averages for Google Ads Conversion Rates.” SEOWithDavid.com, 2023.

² Robbins, Ron. “What Is the Average Google Click through Rate by Position – CLICTA Digital.” Clicta Digital Agency, December 2, 2022. https://clictadigital.com/what-is-the-average-google-click-through-rate-by-position/.

³ Tovar, Maddie. “Google Ads Statistics for 2023.” Bind Media, October 10, 2023. https://bind.media/ppc/google-ads-statistics-for-2023/.

⁴ Robbins, Ron. “What Is the Average Google Click through Rate by Position – CLICTA Digital.” Clicta Digital Agency, December 2, 2022. https://clictadigital.com/what-is-the-average-google-click-through-rate-by-position/.

⁵ Kemper, Grayson. “Search Engine Marketing: Why People Click on Paid Search Ads – Clutch.” Clutch. Accessed December 18, 2023. https://clutch.co/resources/search-engine-marketing-why-people-click-on-paid-search-ads.